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Yext Q3 revenue misses analyst expectations

Overview

Yext fiscal Q3 revenue falls 2% yr/yr, missing analyst expectations

Adjusted net income for fiscal Q3 slightly beats analyst estimates

Company considering non-binding acquisition proposal

Outlook

Yext did not provide specific financial guidance due to pending acquisition proposal

Result Drivers

REVENUE DECLINE - Revenue decreased by 2% yr/yr to $112 mln, attributed to lower demand and competitive pressures

OPERATING EXPENSES REDUCTION - Operating expenses decreased significantly, contributing to a positive net income

ACQUISITION PROPOSAL - Company is reviewing a non-binding acquisition proposal, affecting its strategic decisions

Key Details

MetricBeat/MissActualConsensus Estimate
Q3 RevenueMiss$112 mln$113.13 mln (4 Analysts)
Q3 Adjusted EPS$0.14
Q3 EPS$0.05
Q3 Adjusted Net IncomeSlight Beat*$17.5 mln$17.45 mln (4 Analysts)
Q3 Net Income$6.10 mln
Q3 Gross Margin73.9%
Q3 Annual Recurring Revenue$444.4 mln
*Applies to a deviation of less than 1%; not applicable for per-share numbers. Analyst Coverage The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell" The average consensus recommendation for the online services peer group is "buy" Wall Street's median 12-month price target for Yext Inc is $9.75, about 9.9% above its December 5 closing price of $8.87 The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago Press Release: ID:nBw17nS25a For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact RefinitivNewsSupport@thomsonreuters.com. (This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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